KEYWORDS | TỪ KHÓA

A contract whose obligations depend on specified conditions being met.

Something of value exchanged by the parties to a contract; in life insurance this includes the application and premium on the applicant side and the insurer’s promise on the insurer side.

A contract drafted by one party and accepted by the other substantially as written.

A legal principle preventing a party from asserting a right when prior conduct caused another party to reasonably rely on that conduct.

Authority directly granted to a producer by the insurer.

A condition that increases the probability or severity of a loss.

Authority reasonably necessary to carry out expressly granted authority.

The principle of restoring an insured to approximately the financial position held before a covered loss without allowing profit from the loss.

A recognized financial or personal interest in the continued life of the insured; for life insurance it generally must exist when the policy is issued.

The principle that allows insurers to predict total losses more accurately by observing a large group of similar exposures.

A contract requirement that the agreement must be for a lawful objective.

A false statement important enough to affect underwriting or coverage.

Dishonesty or intentional wrongdoing that increases risk.

Carelessness or indifference that increases risk because insurance exists.

The contract element in which one party makes an offer and the other accepts it.

A provision stating that the policy and attached application or other incorporated documents together constitute the complete insurance contract.

The direct cause of a loss.

A tangible condition that increases risk.

A situation in which only loss or no loss can occur; it is the type of risk insurance is primarily designed to cover.

A statement on an insurance application believed to be true to the best of the applicant’s knowledge.

Uncertainty concerning the possibility of financial loss.

A statement or promise required to be literally true when treated as a warranty; insurance applications more commonly use representations rather than warranties.

A situation in which loss or gain is possible; it is generally not insurable.

A contract in which only one party, the insurer, makes the legally enforceable promise to perform.

A contract that pays a stated amount rather than measuring the exact financial amount of loss; life insurance is generally a valued contract.

The voluntary relinquishment of a known right.

A duty to handle money or property entrusted by another person with honesty, care, and loyalty to the person whose funds are being handled.